Ethereum lacks momentum in the short term
Matrixport analysts pointed out in an analysis released yesterday that currently, there is no clear catalyst to support a rebound in Ethereum, traders seem to have surrendered, and Ethereum's market share has once again declined. In addition, the analysts further noted that despite the influx of billions of dollars following the launch of Ethereum ETFs in the United States, Ethereum has still been unable to shake off its downward trend since the summer of 2024, and it may take until next year to get out of this predicament.
#Matrixport Today – Dec 23: #Ethereum’s Struggle: Waiting for a #Bullish Revival in 2025#cryptomarket #MarketTrends #MarketInsights #CryptoInvesting #Crypto #BTC #ETH pic.twitter.com/h8gFMcXyyU
— Matrixport Official (@Matrixport_EN) December 23, 2024
Matrixport analysts said:
"Ethereum bulls may need to be patient, as a stronger and more sustainable bullish narrative may not emerge until 2025. If market conditions are favorable, the new year may bring a wave of optimism for Ethereum, potentially reversing the current downward trend."
On-chain whales selling ETH
In fact, on-chain data also shows that the weak price trend has led many whales to start surrendering, transferring Ethereum to exchanges for sale. According to previous reports from Zombit, Tron founder Justin Sun has deposited 108,919 ETH (about 400 million USD) into HTX at an average price of $3,674 since November 10.
On the other hand, according to information shared by on-chain analyst Yu Jin, the famous ETH/BTC bull James Fickel has again reduced his ETH/BTC long position two hours ago, exchanging 6,500 ETH for 235.6 WBTC and repaying his debt on the lending protocol Aave.
According to Yu Jin, James Fickel's ETH/BTC long position peaked at the end of May when he had borrowed 2,987 WBTC (over 200 million USD) on Aave, which were exchanged for ETH at an average price of 0.054. However, due to Ethereum's poor performance, James Fickel began to reduce his position starting in August: gradually redeeming ETH to sell for WBTC to repay loans. Over the past four and a half months, he has reduced his position by repaying loans through the sale of 59,500 ETH, with an average exchange rate of 0.04. Currently, he still has a debt of 575.3 WBTC in his position.
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